Correlation Between Ford and KLP Aksje
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By analyzing existing cross correlation between Ford Motor and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on Ford and KLP Aksje and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ford with a short position of KLP Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and KLP Aksje.
Diversification Opportunities for Ford and KLP Aksje
Significant diversification
The 3 months correlation between Ford and KLP is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and KLP Aksje Fremvoksende in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Aksje Fremvoksende and Ford is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ford Motor are associated (or correlated) with KLP Aksje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Aksje Fremvoksende has no effect on the direction of Ford i.e., Ford and KLP Aksje go up and down completely randomly.
Pair Corralation between Ford and KLP Aksje
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.41 times more return on investment than KLP Aksje. However, Ford is 2.41 times more volatile than KLP Aksje Fremvoksende. It trades about 0.18 of its potential returns per unit of risk. KLP Aksje Fremvoksende is currently generating about -0.19 per unit of risk. If you would invest 1,022 in Ford Motor on September 3, 2024 and sell it today you would earn a total of 76.00 from holding Ford Motor or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ford Motor vs. KLP Aksje Fremvoksende
Performance |
| Timeline |
| Ford Motor |
| KLP Aksje Fremvoksende |
Ford and KLP Aksje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and KLP Aksje
The main advantage of trading using opposite Ford and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, KLP Aksje can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KLP Aksje will offset losses from the drop in KLP Aksje's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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